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seriousDFW
Posts: 405 Forumite

I have been on the MSE boards since February 2011, and have tackled some debt since then but to be honest, I haven't been as serious about it as I could have been. Hence a new username reflecting what I want to be: a serious DFW!
The only debts my wife and I have are credit cards (see signature) and these have built up since university and the first years of our careers when we were on low incomes.
This time last year our debt was about £17,000 and so we've done pretty well so far to get it down to it's current level of about £10,700. However, we haven't been as frugal as we could have been. Don't want to beat ourselves up about it, but we do want to really start tackling the debt so that we can be DF at the latest by middle of next year, because we then want to start saving for a house deposit. In some ways starting this with just 6 months to go when we've been debt-fighting for a year seems a bit strange, but actually I'm more motivated than ever to kick it into touch now!
Things we've done so far to reduce debt:
So I have joined 2 challenges on the boards:
We are also trying to live a more simple life, so have been decluttering our flat. We have been amazed at the amount of things we have bought that we didn't really want in the first place! However, we have viewed these purchases as either things we've had enjoyment from before selling, or donated to charity. And we have learnt from it that we don't want to continue doing that.
Another mistake we made was allocating ourselves a certain amount of 'fun money' each month. The amount varied between £100 and £150 EACH a month, just to spend on our own entertainment. We have realised this is ludicrous when trying to become DF so have cancelled this, deciding that we will spend on what we NEED, not on what our 'fun money' budget allows!
I am hoping this diary will help me to keep motivated as I can share some of the difficulties I have in achieving my goals, and hopefully get some advice along the way.
The only debts my wife and I have are credit cards (see signature) and these have built up since university and the first years of our careers when we were on low incomes.
This time last year our debt was about £17,000 and so we've done pretty well so far to get it down to it's current level of about £10,700. However, we haven't been as frugal as we could have been. Don't want to beat ourselves up about it, but we do want to really start tackling the debt so that we can be DF at the latest by middle of next year, because we then want to start saving for a house deposit. In some ways starting this with just 6 months to go when we've been debt-fighting for a year seems a bit strange, but actually I'm more motivated than ever to kick it into touch now!
Things we've done so far to reduce debt:
- eBay anything we didn't want anymore (this actually ended up paying for a holiday we had booked pre-LBM but much better than putting more on credit).
- Budget properly. I have designed a spreadsheet to record weekly outgoings over the coming year, so it tells me the start balance each week, end balance, DDs/SOs that go out on what day, and also how much we've budgeted for groceries/petrol. I keep this updated and we can try different scenarios to see if we can reach DF sooner. It has lots of red for negative amounts and then turns the cells a lovely green colour as we become DF!
- Meal plan. We're not the best at this because of my own eating issues and because we are partial to the odd takeaway, but it's something we're continuing to try and get better at.
- Remove unnecessary expenses (such as gym membership, LoveFilm, magazine subscriptions etc.).
So I have joined 2 challenges on the boards:
- Become DF in 2012
- Save £12k in 2012
We are also trying to live a more simple life, so have been decluttering our flat. We have been amazed at the amount of things we have bought that we didn't really want in the first place! However, we have viewed these purchases as either things we've had enjoyment from before selling, or donated to charity. And we have learnt from it that we don't want to continue doing that.
Another mistake we made was allocating ourselves a certain amount of 'fun money' each month. The amount varied between £100 and £150 EACH a month, just to spend on our own entertainment. We have realised this is ludicrous when trying to become DF so have cancelled this, deciding that we will spend on what we NEED, not on what our 'fun money' budget allows!
I am hoping this diary will help me to keep motivated as I can share some of the difficulties I have in achieving my goals, and hopefully get some advice along the way.
DFBX2013: 021 :j seriousDFW £0 [STRIKE] £3,374[/STRIKE] 100% Paid off
Proud to have dealt with my debts.
Proud to have dealt with my debts.
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Comments
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Dear sDFW, sounds like you have made good inroads to your debt already. The LB moments occur at different times and you do need to use the motivation they bring to make significant changes. Good luck with your journey and definitely, if your debt can be cleared that quickly then do stop any unnecessary spending as life will look very different without the debt.
Best wishes, Tilly2004 £387k 29 years - MF March 2033:eek:
2011 £309k 10 years - MF March 2021.
Achieved Goal: 28/08/15 :j0 -
Thank you Tilly!
Here's my SOA if anyone's interesting in critiquing it! I have always been reluctant to post it as I'm scared I will be judged but I know that is stupid and this is not a place for judgement, and I am sure there will be advice that could help. Thanks in advance if anyone does take the time to read/advise.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1673
Partners monthly income after tax....... 1585
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3258
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 575
Management charge (leasehold property).. 0
Council tax............................. 105
Electricity............................. 28.5
Gas..................................... 28.5
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 49
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 12
Buildings insurance..................... 0
Contents insurance...................... 23
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 100
Holiday................................. 150
Emergency fund.......................... 0
Union................................... 19
Total monthly expenses.................. 1644
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
CC1............................1817......40........19.9
CC2............................3685......86........18.9
CC3............................2534......62........21.9
CC4............................2686......50........24.9
Total unsecured debts..........10722.....238.......-
Monthly Budget Summary
Total monthly income.................... 3,258
Expenses (including HP & secured debts). 1,644
Available for debt repayments........... 1,614
Monthly UNsecured debt repayments....... 238
Amount left after debt repayments....... 1,376
Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,722
Net Assets.............................. -9,722DFBX2013: 021 :j seriousDFW £0 [STRIKE] £3,374[/STRIKE] 100% Paid off
Proud to have dealt with my debts.0 -
Hi, a couple of points, firstly have your tried getting a balance transfer to 0% card? If not possible then min payments on the other and throw as much of your space cash at highest rate card. It looks as though you could throw £1k of free income in addition to min payments. That would allow you to be debt free relatively quickly. Don't forget after that to start up an ISA, plus a regular saver if possible. Well done to you for your progress and focus.
Best wishes Tilly2004 £387k 29 years - MF March 2033:eek:
2011 £309k 10 years - MF March 2021.
Achieved Goal: 28/08/15 :j0 -
Thanks for the reply.
I have thought about a 0% balance transfer but I've applied for CCs in the past and been rejected and so I am scared to apply for them now! I haven't applied for one since before I started paying down the debt though, so it may have been because I had a lot of debt and it might be different now. I have checked my credit files and there's nothing adverse on there (no missed payments/defaults). I have actually only last month paid off another CC in full, and I have this week received an offer for 0% for six months, so I will transfer my highest APR CC balance to that card.
I do now plan to throw all of the spare money at CCs, and the snowball calculator indicates I will be DF by May 2012 which would be fantastic as then I can start saving!DFBX2013: 021 :j seriousDFW £0 [STRIKE] £3,374[/STRIKE] 100% Paid off
Proud to have dealt with my debts.0 -
I just wanted to say hi and well done for clearing over £6k of debt in a year.seriousDFW wrote: »[*]Budget properly. I have designed a spreadsheet to record weekly outgoings over the coming year, so it tells me the start balance each week, end balance, DDs/SOs that go out on what day, and also how much we've budgeted for groceries/petrol. I keep this updated and we can try different scenarios to see if we can reach DF sooner. It has lots of red for negative amounts and then turns the cells a lovely green colour as we become DF!
it has different colours depending if my bank is in credit (green), overdrawn to within 100 of my limit (pink), within 100 of limit (blue) and if it looks like i will go over limit (RED)
helps me see at a glance if spending x amount now will take me overdrawn next week.
I also play with mine continually trying different scenarios. what will happen if i pay this much or this much etc.:)0 -
Thanks, yours sounds even more colourful than mine!DFBX2013: 021 :j seriousDFW £0 [STRIKE] £3,374[/STRIKE] 100% Paid off
Proud to have dealt with my debts.0
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